Pensions Act 2014

Rate of section 7 pension, when added to any priority pension, straddles the full rate

This section has no associated Explanatory Notes

5(1)The rate of the person’s state pension under section 7 is to be increased under this paragraph if—

(a)the amount of any state pension that has priority is less than the full rate of the state pension, but

(b)the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate.

(2)If at any time the full rate of the state pension is increased, the rate of the person’s state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time.

(3)If at any time an order under section 151A of the Administration Act comes into force, the rate of the person’s state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force.

(4)In this paragraph—

  • “the appropriate percentage”—

    (a)

    in sub-paragraph (2), means the percentage by which the full rate is increased;

    (b)

    in sub-paragraph (3), means the percentage specified in the order;

  • “the excess” means the amount by which the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate;

  • “the shortfall” means the amount by which the amount of any state pension that has priority is less than the full rate.